Today we’ll take a look at consolidated Elevance Health Inc. (NYSE:ELV). The company’s stock has seen decent share price growth at the teen level on the NYSE in recent months. With many analysts covering the large-cap stock, we can expect any price-sensitive announcements to have already factored into the stock’s share price. However, what if the stock is still a bargain? Today, I’ll be analyzing the latest data on Elevance Health’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Elevance Health
How much is Elevance Health worth?
Great news for investors: Elevance Health is still trading at a fairly low price. In my assessment, the stock’s intrinsic value is $703.56, but it’s currently trading at $524 on the stock market, meaning there’s still a buying opportunity now. Elevance Health’s share price also looks relatively stable relative to the rest of the market, as indicated by its low beta. If you believe the stock price will eventually reach its true value, a low beta could suggest it’s unlikely to do so quickly anytime soon, and once it reaches it, it may be difficult to get back into an attractive buying range.
What is the future of Elevance Health?
Future prospects are an important aspect when you’re looking to buy a stock, especially if you’re an investor looking for growth in your portfolio. While value investors would argue that it’s intrinsic value relative to price that matters most, a more compelling investment case would be high growth potential at a low price. Elevance Health’s earnings over the next few years are projected to increase 41%, indicating a very optimistic future. This should lead to stronger cash flows, fueling higher shareholder value.
What does it mean to you
Are you a shareholder? Since ELV is currently undervalued, it could be a great time to rack up more holdings in the stock. With an optimistic outlook on the horizon, it appears that this growth has not yet been fully incorporated into the share price. However, there are also other factors to consider, such as financial strength, which could explain the current undervaluation.
Are you a potential investor? If you’ve been eyeing ELV for a while, now might be the time to jump in. Its prosperous future prospects are not yet fully reflected in the current share price, which means it’s not too late to buy ELV. But before making any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
It can be very helpful to consider what analysts expect for Elevance Health from their most recent forecasts. At Simply Wall St, we have analyst estimates which you can view by clicking here.
If you are no longer interested in Elevance Health, you can use our free platform to view our list of over 50 other stocks with high growth potential.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using unbiased methodology only and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis driven by fundamental data. Please note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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